Mumbai, Jul 25 (PTI) India Inc’s borrowings from foreign sources like external commercial borrowings (ECBs) and rupee bonds stood at USD 1.63 billion in June, RBI data showed today.
In June 2016, Indian companies had borrowed USD 1.07 billion from overseas markets using these instruments.
However, the two sets of data are incomparable as there were no rupee denominated bonds (RDBs) or rupee bonds allowed until September 2016.
Of the total capital raised from overseas destinations in June, USD 1.62 billion was in the form of ECBs and USD 15.36 million RDBs.
Among major borrowers, Aecom India Private raised USD 14.89 million through masala bonds to meet its general corporate needs.
Through ECBs, Adani Ports and Special Economic Zone borrowed USD 500 million for refinancing of earlier ECBs, rupee loans and improving port facility. Tata Teleservices borrowed USD 221 million to refinance ECBs too.
Markets regulator Sebi last week directed Indian companies to temporarily stop issuing rupee denominated bonds also known as masala bonds.
It has been suspended for a period until which the total utilisation of corporate debt issuance limit by foreign entities falls below a certain threshold.
The temporary ban comes at a time when masala bonds have become a popular choice among companies to raise funds from overseas markets.
This is published unedited from the PTI feed.